HomeMy WebLinkAboutMINUTES - 02271990 - 1.72 � .77P
TO: BOARD OF SUPERVISORS
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FROM: L~ / Costa
Phil Batchelor, County Administrator Ar� ,
�- County
DATE: February20 1990
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SUBJECT: LEGISLATION: AB 2742 (Calderon)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)8 BACKGROUND AND JUSTIFICATION
RECOMMENDATION
Adopt a position in SUPPORT of AB 2742 by Assemblyman Calderon
which would expand the types of businesses which must comply with
the existing reporting requirements relating to large currency
transactions.
BACKGROUND:
Under existing law, a wide variety of banks and other financial
institutions are required to report to the State Department of
Justice any transactions involving currency or other monetary
instruments in excess of $10, 000.
Assembly Calderon has introduced AB 2742 which, as introduced,
would expand these record keeping and reporting requirements by
making them applicable to real estate brokers, escrow agents,
title insurers, title companies and escrow companies. In
addition, these , record keeping and reporting requirements would
be applicable to transportation dealers, meaning vehicle dealers,
watercraft dealers or a dealer in aircraft.
AB 2742 also establishes a Drug Profits Seizure Strike Force in
the State Department of Justice. This Strike Force would have
primary responsibility for examining and analyzing these reports
and records. The Strike Force would also have the responsibility
to recommend administrative regulations and legislation which is
needed to further combat money laundering.
CONTINUED ON ATTACHMENTYeS YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S): &"-h �,
ACTION OF BOARD ON_ February 2 7, 1990 APPROVED AS RECOMMENDED / OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. -7
CC: ATTESTED
Please See Page 2. PHIL BATCHELOR,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY 1hV1
M382 (10/88) ,DEPUTY
Under current law the Franchise Tax Board is authorized, but not
required, to ask an individual to submit any copies of federal
information returns filed relating to cash received in trade or
business. AB 2742 would require the Franchise . Tax Board to
require the submission of such forms.
Finally, AB 2742 would require any individual who in the course
of trade or business in this state receives more than $10,000 in
one transaction or two or more related transactions to report
certain information regarding the transaction to the Franchise
Tax Board within 15 days.
All of the features of AB 2742 relate directly to provisions of
the Board of Supervisors ' war on drugs, and specifically concerns
which have been expressed to the Action Plan Advisory Committee
by staff to Supervisor Fanden and which were subsequently
incorporated into the Action Plan. It, therefore, seems entirely
appropriate for the Board to indicate its support for AB 2742.
cc: County Administrator
District Attorney
Sheriff-Coroner
County Probation Officer
Health Services Director
Drug Program Administrator
Chair, Drug Abuse Advisory Committee
Les Spahnn, SRJ. Jackson, Barish & Associates